Deutsche Bank Upgrades Skyworks Solutions To 'Buy', Raises PT
Thursday, December 15, 2021 2:48 PM

Deutsche Bank (DB) upgraded its rating on Skyworks Solutions Inc. (NASDAQ:SWKS) to "Buy" from "Hold" and raised its price target on the stock to $23.00 from $22.00.

"We think the market has overdone its punishment of Skyworks. The stock is off 37% in the past two months on little hard news. We think the company’s share position in the industry remains strong and transitions to 3G and 4G networks should boost prospects in 2012 and beyond," DB analyst Jonathan Goldberg wrote in a note.

Goldberg said healthy smartphone volumes for many Skyworks customers are driving results this quarter. "Strong Apple (Buy, $380.19) volumes are a mixed blessing for Skyworks, as it comes at the expense of other devices where they have a higher dollar content. That being said, we think volumes at Samsung, Huawei and ZTE (Buy, HKD23.50) remain strong. Netting this all out, we think Skyworks is tracking towards meeting 1QFY12 expectations, albeit with strong seasonality in Q2," Goldberg added.

Goldberg thinks the advent of low-cost smartphones in emerging markets will benefit Skyworks by prompting a transition to higher priced 3G content. Similarly, LTE volumes start to become material next year, the analyst said.
On Thursday, SWKS is trading 1.99 percent higher at $14.36. The stock has been trading in the 52-week range between $13.72 and $37.82.